That’s because they’ll burn through the cash before they’ve figured out their business model, attracted customers, and generated their own cash.
Start-ups need three things:
- Cash flow from internal operations
Beware of start-ups with Herman Miller chairs. In fact, they shouldn’t have any chairs. Nobody should be sitting. Everyone should be out hustling for business. They should all be wearing runners.
Employees won’t need gym memberships either. Every day should bring them to physical exhaustion, just like a good workout.
The key is to get through the start-up phase as quickly as possible and start thinking and acting like a big company with goals to meet, accountability, and customers and shareholders to satisfy. In other words, professional discipline.
Building business wealth in a start-up means delivering value and results to both customers and shareholders. Results are financial. Don’t look for ego strokes or emotional satisfaction, other than surviving, and then thriving.
Full speed ahead!
Copyright 2015 Phil Symchych. All rights reserved.